Report on Futurepast’s
Verification Engagement with

Manulife Investment Management
Relative to Its

Annual estimates of GHG emissions andcarbon storage at timberland investments
Report Date: 2023-06-12

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Contents
Addressee ................................................................................................................................................................................... 3
Responsibilities ........................................................................................................................................................................ 3
Criteria ......................................................................................................................................................................................... 3
Type of Engagement ............................................................................................................................................................... 3
Objectives of the Verification.............................................................................................................................................. 4
Scope of the Verification ....................................................................................................................................................... 4
Level of Assurance and Threshold of Materiality....................................................................................................... 4
Summary of Manulife Investment Management’s Greenhouse Gas Statements for activities of its
subsidiary Manulife ................................................................................................................................................................ 5
Description of Data and Information Management Systems ................................................................................. 6
Discussion of Verification Team’s Risk Assessment ................................................................................................. 6
Description of Evidence-Gathering Procedures ......................................................................................................... 7
Direct Emissions and Removals ........................................................................................................................................ 7
Indirect Emissions and Removals from Imported Electricity, Steam, Heat, and Cooling .......................... 8
Indirect Emissions and Removals from Manulife’s Supply Chain ....................................................................... 8
Indirect Emissions and Removals from the Use and End-of-Life Stages .......................................................... 8
Indirect Emissions from Other Categories .................................................................................................................... 8
Base Year Adjustments.......................................................................................................................................................... 9
Verification Criteria ................................................................................................................................................................ 9
Verification Team Leader and Independent Reviewer Signatures ..................................................................... 9Annex A: Verification Plan ................................................................................................................................................. 10
Annex B: List of Findings .................................................................................................................................................... 13
Verification Opinion ..............................................................................................................................following page 17

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Addressee
This report is addressed to the management of Manulife Investment Management (Manulife), 197
Clarendon St., Boston, MA 02116 USA.

Responsibilities
It was the responsibility of Manulife, to prepare its timberland business greenhouse gas inventory
statements in accordance with the Greenhouse Gas Protocol Corporate Accounting and ReportingStandard, revised edition (2004), and its subsequent updates. This responsibility includes designing,
implementing, and maintaining a data management system adequate for the preparation and fairpresentation of the statements. Manulife is responsible for the fair presentation of its data andinformation and ensuring that these are free from material misstatements.
Based on the work we performed, it was the responsibility of Futurepast to express an opinion as towhether the greenhouse gas emissions as stated by Manulife were presented fairly in accordancewith the agreed criteria.

Criteria
Manulife and Futurepast agreed that the criteria for the statements to be verified were theGreenhouse Gas Protocol Corporate Accounting and Reporting Standard, revised edition (2004), andits subsequent updates. Futurepast assessed the criteria and found them suitable, considering:a) the engagement’s scope and boundaries;b) the greenhouse gases and sources, sinks and reservoirs associated with Manulife’s facilities,
physical infrastructure, activities, technologies, and processes;c) the quantification methods employed; andd) requirements for disclosures.
In accordance with the criteria, Manulife reported greenhouse gas emissions using the Global
Warming Potentials (GWP) found in the IPCC’s Assessment Report 4 Global Warming Potentials. In
Futurepast’s opinion, the agreed criteria were relevant, complete, reliable and understandable.

Type of Engagement
This engagement included the following types of activities:☒ Verification☐ Validation☐ Agreed-upon procedures

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Objectives of the Verification
The objective of this engagement is to verify the 2022 emissions year (1 January 2022 to 31
December 2022) of Manulife’s GHG inventory and to confirm that the emissions are• free of material misstatements within the percent threshold of materiality, and• that the inventory conformed to the requirements of the criteria for verification.
Manulife seeks this verification for internal management purposes and for public GHG emissions
disclosure.

Scope of the Verification
Facilities, physicalinfrastructure, activities,
technologies, and processes

Manulife directly operates forest lands in six countries: Australia, Canada,
Chile, New Zealand, Brazil, and the United States.

Greenhouse gas sources,
sinks, and reservoirs

Scope 1 (“Direct”)







Scope 1 emissions and removals from forest lands
CO2, CH4, and N2O emissions from fuel used in equipment and vehicles(land-based and aircraft) that are owned or directly controlled byManulife
N2O emissions from fertilizer application
CH4 and N2O from prescribed burning (including slash burning)
These three gases were the only greenhouse gases reported.

Scope 2 (“Energy Indirect”)Given the remote nature of timberlands, there are no relevant scope 2
emission sources.

Scope 3 (“Other Indirect”)
Emissions from fuel used in equipment and vehicles (land-based andaircraft) that are owned by 3rd-party contractors and used for forest
management and related activities at Manulife-managed sites.

Types of greenhouse gases

CO2, CH4 and N2O. These three gases were the only greenhouse gases
reported.

Time period2022 emissions year (1 January 2022 to 31 December 2022)

Level of Assurance and Threshold of Materiality

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Manulife Investment Management has requested verification services be performed at the limited
level of assurance.

Summary of Manulife Investment Management’s Greenhouse Gas
Statements for activities of its subsidiary Manulife
2021

2022

(a) Emissions - Fuel Combustion from MIM TA Owned
Vehicles / Equipment (MtCO2e)*

2,879

3,102

(b) Emissions - Fuel Combustion from Contractor Owned
Vehicles / Equipment (MtCO2e)

195,330

482,445

21,1998,642

52,31837,489Total Scope 1 (MtCO2e, (a+c+d) )76,39649,050Total Scope 3 (MtCO2e, (b))

195,330

482,445

Total Non Biological Emissions (MtCO2e)271,726

531,496 (1)Removals (Net Biological Change MtCO2e)

3,179,520-1,339,974 (2)615,204,003

638,506,302(c) Total Direct and Indirect N2O Emissions (MtCO2e)(d) CH4 and N2O Emission from Managed Fire (MtCO2e)

Storage (Carbon stocks MtCO2e)
Forests-24,642,273

Resource Change
2,943,228

Wood products

Total Net GHG Profile (2+3‐1)

2,557,633 (3)686,164

Source: Manulife Calculator Dashboard2022 version 3 May 5, 2023/Dashboard Total Adjustments(Resource Change) are made to adjust 2022 values to be comparable to 2021. These include property
exchanges, and changes to the inventory methods.
* Metric tons of carbon dioxide emissions equivalent

As shown in the table above, forest carbon stores increased by approximately 23.3 million MtCO2e
from the previous year. This was offset by a negative 24.6 million MtCO2e Resource Change
adjustments for property exchanges and changes in inventory methods (so as to compare like withlike). This resulted in a net negative 1.34 million (i.e., decrease) in forest carbon stores. Carbon
stored in wood products was calculated to be 2.56 million MtCO2e. The wood products storage
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(2.56), net biological decrease (-1.34) in the forest carbon, and the non-biological emissions (-0.53)
summed to a net greenhouse gas profile of 0.69 million MtCO2e of removals for 2022.
Futurepast’s Lead Verifier and Forestry Expert reviewed the initial Manulife Timberland Calculator
Dashboard 2022 between April 7th and April 12th. The results of our findings were reviewed with a
Manulife representative on April 13th. An updated Timberland Calculator Dashboard 2022_v3 wasprovided on May 5, 2023. This updated dashboard and earlier versions were reviewed along withthe requested source spreadsheets between April 14th and May 10, 2023. Three versions of
Futurepast’s list of findings were provided to Manulife. Manulife provided responses that were
subsequently reviewed and accepted.

Description of Data and Information Management Systems
Manulife described their methods for establishing its greenhouse gas inventory in a Greenhouse
Gas Methodology Manual, prepared April 13, 2023, by the Delphi Group with support from Finite
Carbon. This is a document that describes the base year, their sources/sinks/pools, and thequantification methods. They also describe the uncertainty assessment, their monitoring, data
quality management, and GHG reporting. Their appendices provide details on the equations used
and the citations for their sources.
The quantification and reporting process is centralized and performed via GHG calculator (MSExcel) that tracks input data, processes it to carbon values and outputs to summary tables. The
calculator has been tested against earlier summary methods for consistency and errors. The
document describes a number of QA/QC tests conducted by Manulife and Finite staff. These tests
included forest area checks, conformance by forest type, age class distribution, and merchantable
stocking, conversion of units, visually examining the year-to-year changes in datasets and thatgrowth was within expected bounds. The calculator outputs inventory to formats to WRI GHG
Protocol conformance.
The carbon calculations for the forest storage are based on estimates of forest volumes that are
annually estimated by Manulife regional managers.” Cursory information is given on the methods
for collecting forest inventory information via conventional plots and by LiDAR methods. Manulife
is switching over to the LiDAR methods and the accuracy of the LiDAR results was requested by
Futurepast but was not provided. The volume estimate methods were not reviewed by theverification team and the volumes were used “as is”. The verification focused on the calculation of
the forest carbon stores, wood products, and estimates of production of greenhouse gases by scope
1 and scope 3 activities.

Discussion of Verification Team’s Risk Assessment
Reporting activity
GHG sources

Inherent

Control

Non-Detection

High for forest volume

Low as their measurement

Low as forest volume measure

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Boundaries
Data management

Management controls

measures; field inventories canhave errors of up to 10 %.
Volumes are provided “as is.”Medium: boundaries may not
be precisely known.

systems appear to besophisticated.

are well established and errors
are known.

Survey and GPS/GIS data are
generally accurate.

Low as Hancock appears tohave an accurate management
system.

High as data is coming in froma variety of regions in different
formats and there are
numerous calculations to be
made.
Medium as controls are only as
good as the procedures are
implemented. We relied on
Hancock to institute data
management.

Low as Manulife demonstrated
a careful attention to details intheir methods document.

Low as there are ways to crosscheck the data against otherregions and against expectedbounds.

Low as Manulife appears to bewell organized andcommunications with theregions look adequate.

Low as Hancock details QA
checks and appears to be awareof sources of error.

Description of Evidence-Gathering Procedures
Direct Emissions and Removals
We reviewed the harvested wood products (HWP) calculations in detail and confirmed the sourceof the values reported in the dashboard "Timberland Calculator Dashboard2022" (referred to as the"Dashboard"). We confirmed that the Dashboard values source data from the "Carbon Summary by
Property2022" tab in the Dashboard workbook, which in turn source data from the"XXX_fulldata.xlsx" workbooks (where XXX is the name of the region/country).
We reviewed the Dashboard values source data from the Brazil2022Fulldata. Several cells were
found to be incorrectly linked and this information was provided to Manulife in our list of findings.
Some of these issues were corrected in Dashboard v2, and some were corrected in Dashboard v3.
We reviewed the mean annual increment by property in Brazil which ranged between 15.56 m3/ha
to 41.69 m3/ha averaging 26.5 m3/ha and found this to be within expected ranges althoughsomewhat on the high end. We checked Standing Live and Debris calculations in Brazil2002Fulldata
tracing back to the formulas in the Delphi document and all the formulas were found to be correctly
implemented. We reviewed the area values (hectares and acres) in Brazil2022Fulldata and foundthat some properties that had not been inventoried were not included in the calculations. Whilethey should not have a Standing Live carbon value, they should have a Debris calculation based onwhen that property was last harvested. We reviewed the calculation of Harvested Wood Products
from Brazil2022Fulldata and found that the Paper CO2e was abnormally high. After tracing this it
was found to be looking up the wrong value on the pivot table.
We reviewed the proportion of CO2e in Long Term Storage as a proportion of Standing Live. Several
properties showed unusually high numbers. We reviewed the amount of Debris compared to Total
Onsite carbon. Several properties had Debris numbers that made up more than 50% of Onsite
carbon. We also reviewed Harvest Volume as a proportion of Standing Live. Several properties had
unusually high harvest volumes compared to standing live. This was especially noticeable in Brazil
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– Bandeirante, which was identified as a linkage issue between the Dashboard andBrazill2002Fulldata. Other very high harvest volume numbers were found on Leesville, Piedmont,
Tupelo, Salt Creek, and St. Helens.
We spot checked data between several spreadsheets. Comox showed up as both Canada and NZ invarious places. A graph on Dashboard-Total was missing the Brazil data. The conversion factor for
HWST_CDS and HWPW_CDS were the same as SWST_CDS and SWPW_CDS but many jurisdictions in
the US use a higher factor for hardwood. We reviewed Aboveground Carbon in comparison to otherdata for each US property. There were 54 cases where Aboveground Carbon was zero, but age wasvalid and non-zero. These cases should have carbon tons.
We calculated average stem volume per acre values for each property in the "Carbon Summary by
Property2022" tab in the Dashboard workbook as a check to ensure that the values are within
expected ranges and generalized assumptions on the forest types and management regimes.
Direct emissions by fuel use, burning biomass, and fertilizer use were approximately 0.5 million Mt
CO2e). Manulife provided summary data in the Dashboard Total and these were linked to tabs that
aggregated and calculated the various sources. Each data cell in the Total tab could be linked backto another intermediate aggregating sheet, itself with links to still other data source sheets oranother file the Non-biological Emissions Calculator. We selectively checked equations, factors, andreported raw data for their sources and for reasonableness.
Indirect Emissions and Removals from Imported Electricity, Steam, Heat, and Cooling
Scope 2 emissions were not included in the greenhouse gas inventory for Manulife’s forest holdings
as they reported there was no infrastructure on the forest properties. For this reason, scope 2
emissions in Manulife’s GHG statements are quantified as “zero” and are omitted from theEmissions, Removals and Storage summary. Carbon accounting for the administrative management
functions associated with Manulife’s timberland business was not included in the scope of reporting
subject to this verification engagement.
Indirect Emissions and Removals from Manulife’s Supply Chain
Supply chain emissions were not included in this greenhouse gas inventory.
Indirect Emissions and Removals from the Use and End‐of‐Life Stages
Harvested wood from the forest was converted to mill deliveries and wood products. Manulife
provided wood harvest volumes and carbon stored long-term products in the Timberland
Calculator Dashboard. These summaries were linked back to the file XXFull data.xls. We requested
the full data files and traced wood harvested volumes there. We checked factors and equations.
Indirect Emissions from Other Categories
No other categories of emissions associated with timber management not mentioned in this reportwere included in the greenhouse gas inventory of Manulife.

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Base Year Adjustments
The Timberland Calculator Dashboard 2022 v3, Dashboard Total tab under the heading 2022 Net
Change Summary shows a summation of the year-end stores for 2022 and 2021 and shows changes
in CO2e emissions in year 2022 from the previous year 2021. An entry called “Resource Change”
shows the change in CO2e as result of property divestitures and acquisitions, changes in estimation
methods, and errors in calculations that occurred in year 2022. The Resource Change for 2022
summed to approximately an additional 24.6 million MTCO2e. This additional CO2e was thensubtracted from the net GHG profile value for 2022 so as to make a corrected comparison to year
2021. The WRI GHG Protocol provides guidance on pages 37 and 38 that this adjustment should bemade to the base year and not to the prior year (2021). However, this change of 24.6 million is lessthan the Forest Carbon Stores in the base year of 609 million MTCO2e and does not trigger arecalculation of the base year since the chosen threshold for recalculations as listed in theGreenhouse Gas Inventory Methodology Manual May 19, 2023, was a 10% change.
Improved data collection on fuel use by contractors (Scope 3 emissions) in 2022 resulted in aapproximately three-fold increase in the estimates of CO2e emissions for scope 3 non-biologicalemissions when compared to the emissions reported in the base year 2020. This increase exceeded
the threshold of 10% that would trigger a recalculation of the baseline emissions in accordancewith the GHG Protocol, chapter 5.

Verification Criteria
Futurepast conducted its verification activities based on the requirements of ISO 14064 (2019)
Greenhouse gases—Part 3: Specification with guidance for the verification and validation ofgreenhouse gas statements.

Verification Team Leader and Independent Reviewer Signatures
Verification Team Leader
Kim Mattson, 2023-05-10
Independent Reviewer
John C. Shideler 2023-06-12
This report is approved when signed and dated by the independent reviewer.

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Annex A: Verification Plan
Verification-Validation
Workbook: Verification Plan
Manulife Investment Management
Timberland and Agriculture, Inc.

CLIENT

CONTACT:

Brandon Lewis
Email:ENGAGEMENT

Verification of 2022 carbon inventory atlimited level

Phone:[609-375-7545]
Leadverifier
Technical
expertPLAN
APPROVEDBY:
LEVEL OFASSURANCE:OBJECTIVES

SCOPE
a)
b)

kgm

PLAN DATE:ENGAGEMENT
TYPE:

Limitedblewis@manulife.com

6-Apr2023

Kim Mattson(530) 925
5943

Bruce Carroll(843)2702648

PLAN REV.:

10-May-2023

Verification

inventory and emissions are free of material misstatements within the percent threshold of materialitythat the inventory conformed to the requirements of the criteria for verification[Enter objective 3 here]
Entries are required for all scope elementsa-f.
GHG sources, sinks and reservoirs
Forest Carbon pools, harvested wood, emissions of Scope 1 and 3.
Boundaries

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Operational control of five regions in millions of acres: Australia 1.4, Chile 0.2, New Zealand 0.6, North
America (US 3.2 and Canada 0.05)c)

Physical infrastructure, activities, technologies and processes within the scope
Forest holdings, fuel use by machinery, fertilization with N, biomass burning. No electricity use.

d)

Data management details
Limited engagement assumes client has adequate data management controlse)Management controls
Limited engagement assumes client has adequate management controlsf)Time periods
Calendar year 2022

IDENTITY AND ROLES OF VERIFICATION TEAMMEMBERS
NAME: Kim Mattson
NAME:

Bruce Carroll

VERIFICATION CRITERIA:

ISO 14064-3

VERIFICATION CRITERIA:

Secondary criteria

REASON(S)FOR PLANREVISION:

ROLE:

Team Leader

530 925 5943

ROLE:

Technical Expert

843 270 2464

MATERIALITY THRESHOLD(%): 10PERFORMANCE
MATERIALITY (%): N/A
DATE PLAN SENTTO RESPONSIBLE
PARTY: 6-Apr-2023

Changes to schedule as List of findings was revised twice andresubmitted.

SCHEDULE FOR SITE VISITS

DAY
Tuesday
ThursdayWednesday

DATE
4-Apr-2023
6-Apr-2023
5-Apr-2023

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ACTIVITY
Receipt of data sheets
Kickoff call
Notification letter
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MEMBER
KM BC
KM BC
KM
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Wednesday

12-Apr-2023

ThursdayTuesday
FridayMonday13-Apr-2023
20-Apr-2023
27-Apr-2023
28-Apr-2023

Tuesday
Tuesday
FridayMay 1-2023
8-May-2923
10-May-2023

FridayMon-Fri
Monday10-May-2023
15-19-May 2023
22-May-2023

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Conference call with
Manulife re calc sheets
Continue verification work
List of findings
Response to List of findings
Follow-up call on List offindings
Version 2 of list of findings
Version 3 of list of findings
Response to Version 3 ofList of findings
Draft report
Additional time added
Independent review anddraft to client

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KM BC
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Annex B: List of Findings
Verification-Validation Workbook: List of Findings
ClientName:
Lead
Verifier:

Manulife Investment Management Timberland and Agriculture,Inc.
Kim Mattson

Instructions to Verifiers

In executing the validation/verification, validators/verifiers shall undertake the following activities:a) collection of sufficient objective evidence on original data/information, ensuring its traceability through the data/information management
process, any further analysis and calculation;b) identification of misstatements and consideration of their materiality;c) assessment of conformity with specified requirements, considering the validation/ verification program.
Record findings of Nonconformity (NC) and Clarification Requests (CR) on this form. Findings of Immaterial Nonconformity (INC) may belisted (or, where a GHG program requires their reporting, shall be listed). Forward Action Requests (FAR) and Recommendations (R) may
also be included as items on this form.
Finding/Clarification: State the requirement that was not met or ask for clarification of information related to audit objectives.
Reference (Ref.): Cite a relevant requirement in a protocol, standard or procedure; or cite information provided by the Responsible Party in amonitoring plan, report or other document.
Audit Evidence: Cite evidence that supports the finding of nonconformity, or (optionally) a reason for requesting clarification.
Responsible Party Action: Summarize the response provided by the Responsible Party with respect to the Finding or Clarification Request.
Lead Verifier Conclusion: State if the response has been accepted, and the disposition of the finding (closed, rewritten as a new NC, etc.).
NOTE: If a matter comes to the verifier’s/validator’s attention that causes the verifier/validator to believe in the existence of intentional
misstatement or noncompliance by the responsible party with laws and regulations, the verifier/validator shall communicate the matter to theappropriate parties as soon as practicable. Intentional misstatements include the possibility of fraud.

#

Type

Issue/Clarification

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Ref.

Audit Evidence

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Lead Verifier
Conclusion

1

2

3

4

CR

CR

Dashboard Carbon Summary data
entriesHTRG Calculator
Dashboard2022 - Carbon
Summary 2021-2022
ChangeCells in row 11 (HVP) in the Carbon
Summary 2021-2022 Change are handentered rather than lookups from asource document. Can you confirm theaccuracy of these numbers or provide thesource document.

Manulife confirmed thatthese numbers are correct
and will provide a source
spreadsheet for our review.

Accepted.

Dashboard Carbon Summary 20212022 Change data entries

HTRG Calculator
Dashboard2022 - Carbon
Summary 2021-2022
ChangeCells in row 15-17 (Brule River, Great
Lakes Forests 1, Great Lakes Forests 2)
columns Y to AC in the Carbon Summary
2021-2022 Change are blank rather thanlookups into a source document. Can you
confirm that these should be zero.

Manulife confirmed thatthese fields should be zero
since these did not use the
new LiDAR process.

Accepted.

Partial explanation is from #4
below, we will re-review thedata.

Accepted. Woodproducts appear to
be calculated basedon average lifetime
instead of 100-yr
lifetime. Also see
Issue 5 below.

CR

Dashboard Total harvests

HTRG Calculator
Dashboard2022 - Dashboard
Total

We show lower harvest in 2022 but muchhigher Carbon Stored Long Term on
average over 100 years in Products In
Use in 2022. Please confirm calculations.
[Note: may be caused by #4 below]

CR

Dashboard Carbon summary byproperty 2022 Harvests Brazil
appear highHTRG Calculator
Dashboard2022 - Carbon
Summary by Property2022

Harvest in Bandeirante seems abnormallyhigh compared to standing inventory
implying a harvest of approximately 67%
of original standing volume (m3).

Two fields were reversed in
the Carbon Summary by
Property2022 - cells :1-8 andM109. Manulife will correctand send a new copy of the
Dashboard/

Accepted.

Harvest on several other properties(Leesville, Piedmont, Tupelo, Salt Creek,
St. Helens) seem high compared tostanding inventory (m3). Please
verify/explain these higher harvests.

As our inventory team
explained
to me the harvest volumes
might be delayed entering thesystem and thus, the volumes
for 2022 might include laterecords from 2021. For someproperties the harvested
volumes are higher in 2022 tocapture the higher timber
prices.

Accepted. Harveston these properties
still seem high but
this error is notthought to bematerial.

Debris numbers seem high with somecarbon debris being more than 50% of
total onsite carbon.

Debris calculations did notchange from last year. PNWproperties often have large
debris carbon pools.

Accepted.

5

CR

Dashboard Carbon Summary byproperty other high harvests

HTRG Calculator
Dashboard2022 - Carbon
Summary by Property2022

6

CR

Dashboard Carbon Summary byproperty debris appear highHTRG Calculator
Dashboard2022 - Carbon
Summary by Property2022

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HTRG Calculator
Dashboard2022 - Carbon
Summary by Client2022

Comox shows up as both Canada and NZ
in Carbon Summary by Client2022. Not
sure if this oversight is affecting any
downstream calculations by region.

Corrected in Dashboard.
Manulife will send a new
copy.

Accepted.

7

CR

Comox property appears to be
inadvertently repeated

8

CR

Dashboard total graph for Brazil

HTRG Calculator
Dashboard2022 - Dashboard
Total

Graph on Dashboard Total is missing
Brazil.

Corrected in Dashboard.
Manulife will send a new
copy.

Accepted.

Emissions data

HTRG Calculator
Dashboard2022 - Emission
Summary byProperty2022

Please provide a copy of HTRG NonBiological Emissions Calculator
spreadsheet so that we may review
source documents for Emission Summary
byProperty2022

The copy was provided on
04/12/2023.

Accepted.

Conversion factors

North America 20212022 full
data Conversion Factor

Review Conversion Factors for
HWST_CDS, HWPW_CDS. Many
sources use 80 cubic feet per cord for
hardwood.

The conversion factors were
supplied by the developerand did not change year overyear.

Accepted.

There are 54 cases where Live
Aboveground CO2e is Zero. In 50 ofthese cases the Age is valid (non-zero,
non-null)

Reviewed: 1) Out of those 54
records, 30 are premerch or
clearcut/non-forested strata
that does not have volumes.
2) The total area of the restof the strata (24 records) is~530 acres.
3) The majority of these 24
records correspond to noncommercial species on the
PNW. That is a gap in theinventory, but we arecollecting LiDAR data on
these properties and will
update these strata nextyear.

Accepted.

9

10

11

CR

CR

CR

Aboveground C calculations

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North America 20212022 full
data US_Inventory 2022

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12

13

14

15

CR

Linkages between Dashboard
and Brazil full data spreadsheetsCR

Property area, forested property
area, and managed forested
area for Brazil

R

Year assigned to some data files
or tabs in excel files have notbeen updated to reflect thecurrent year (2022). We
recommend you review and fix.

CR

Conversion factors BEF

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HTRG Calculator Dashboard
2022 Carbon Summary by
Property 2022 and Brazil
2022 full data PivotTable

Brazil2022fulldata PivotTable

NorthAmerica 2021 2022
Tab Conversion Factors

ENGMT-5D

Several cells are incorrectly linked from
Dashboard to Brazil2022fulldata.
Example: TSV for Brazil links to column
labeled TSV in PivotTable tab, but thiscell links to Net_ForType_Hectares in thepivot table
Various values for hectares exist in
Brazil2022fulldata. Prop Hectares, For
Hectares, Mgnt_For_Hectares do notmatch between pivot tables becausesome are sourced from
BrazilInventory2021 or
BrazilInventory2021raw versus being
source from Brazil_ Property Activity
2021. Brazil Property Activity2021 has
several Property ID's that do not exist on
the other tabs. Please confirm which areavalues are correct. If these extra
properties are owned but not yet old
enough for inventory they should be
included so that Debris is calculated forthem.
1) App A2 Delphi methods document
have references to full data excel tables
dated 2019 2020. The current year is2021 2022. 2) HTRG Dashboard Pivot
tab Carbon Summary by Property 2022,
column H refers to North America 2021
2022 tab PivotTable 2021. This tablecorrectly sums 2022 data, but the tab islabeled PivotTable 2021.
If these factors are being used in
calculations, please provide sources for
BEFs listed in rows 54, 55, and 57. Also
row 57 ratios appears to be reversed.
That is, it appears to be TOTSL to
TOTSLAG. (No dependent cells appear
to be associated with these factors, which
may make this issue moot.)

Corrected.

Accepted.

Corrected. Please see
Brazil2022 fulldata.xlsx

Accepted. We
found that 14 of the
20 properties were
fixed. The
remaining 6 being
unfixed is a small
conservative error.

The original document is notedited for annual calculator
updates.The tab is not
updated to avoid broken
links in the dashboard.

Accepted

None of those coefficientsare used in the calculations.

Accepted

16(FPF-AU-113 2022-07-03)

NA full data Tab US Inv 2022
Column AD Living Biomass

The equation in spreadsheet does notappear to match Eqn 22 in Delphi
Methods doc. Coefficient A in Eqn 22 isnegative. Appears to be positive inspreadsheet. Please check and either
explain or revise calculations.

Same as last year

Accepted.
Dashboard for 2022
volumes werecorrected. But see
Issue 21 below.

Two properties have been removed fromthe total C summation: Salish andTomanamus. These removals reduced
total C by 16.4 million Mt or 4 %. Is theremoval correct?

Yes, we have never included
these properties into a
carbon report because they
have a special status.

Accepted

Addressed in #14.

Accepted

The two different coefficientsare used in Scope 1 andScope 3 calculations.

Accepted

Corrected

Accepted

Issue 16 above

The equation change (to add the minussign) from issue 16 caused a very largechange in End of 2022 Forest Carbon
Stores. Should this have caused arecalculation of the End of 2021 Forest
Carbon Stores.

Corrected both 2022 and 2021
calculations. The adjustments
were made in the North
America 20212022.xlsx
submitted on May 5, 2023.

Accepted. However,an email from
Svetlana Schroderon May 10, 2023,
indicated that thecorrections wereembedded in theadjustment value.

See last two tabs to the right

The overall change in carbon (CO2e)
caused by the change to LiDAR inventory
from conventional inventory in the US
South totaled an additional 6.086 million
tons or 3.54% of the US South inventory.
Please provide more details on the LiDAR
inventory method and accuracy. For
example - would you please provide any
available details on recall, precision, fscore, producer accuracy, users accuracy
overall accuracy or other relevantmeasures, preferably on standing
volume.

Table submitted by Svetlana
Schroder on May 10, 2023,
contained goals for the LiDAR
scans but not the resulting
accuracies. See tabs attachedto this file.

Accepted.
Estimates of forest
volumes were
accepted "as is"with no evaluationof accuracy.

NC

Equation for living biomass
North America

17

CR

Dashboard Carbon summary byproperty 2022

Column O total C Mt CO2e18

CR

Delphi Methods doc 2023

References to year updates

19

R

Repeated US as country code inemission factors

Non-Biological Emissions
Calculator tab Emission
Factors column D (D44 D45)

20

CR

Dashboard Carbon Summary
2021-2022 Change

Last three columns AK-AM

16

21

22

CR

CR

Correction to NA volumes noted in
Issue 16 above

Available information about
volume method changes andaccuracy assessment.

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ENGMT-5D

Several references to years of data
appear to need updates for 2022.
Lookup command from tab Fuel Emission
Calc uses county code to lookup thefactor (CO2eq, Column H). With two
County codes for US in the Emission
Factors, the second factor will not belooked up. The two factors are very
similar and likely not material.
These columns appear to summarize the2021 carbon profile. That is, columns AK
and AL summarize carbon from the 2021
sheet not the 2022 sheet. Please verify
that this is what was intended or if the2022 profile was intended.

17(FPF-AU-113 2022-07-03)

Independent Opinion
on the Statements ofManulife Investment Management
Relative to Its

Annual estimates of GHG emissions andcarbon storage at timberland investments
Opinion Date: 2023-06-12

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ENGMT-5E

1(FPF-AU-112 2023-03-22)

To the Management of:

MANULIFE INVESTMENT MANAGEMENT, TIMBERLAND AND
AGRICULTURE
197 Clarendon St., Boston, MA 02116 USA

Independent Verification
Opinion of:

Futurepast, Inc.
2111 Wilson Boulevard, Suite 700
Arlington, Virginia 22201 USA

Subject Matter:

Annual emissions of GHG emissions and carbon storage

For the Period:

1 January 2022 to 31 December 2022

Details Pertaining to the Statements
Responsible Party, if
Different from Addressee

Statement of Responsibility:

N/A
It was the responsibility of MANULIFE INVESTMENTMANAGEMENT TIMBER AND AGRICULTURE (Manulife) toprepare its ANNUAL GHG EMISSIONS AND CARBON STORAGE
statements in accordance with the World Resources Institute/World Business Council for Sustainable Development’s “TheGreenhouse Gas Protocol: A Corporate Accounting and ReportingStandard – Revised Edition” (March 2004) as amended in 2013
and 2015 (GHG Protocol). This responsibility includes designing,
implementing, and maintaining a data management system
relevant to the preparation and fair presentation of thestatements. Manulife is responsible for the fair presentation of its
data and information and ensuring that these are free frommaterial misstatements.

Intended User and Limitation of Liability
Intended User:

This report has been prepared for the management of Manulife
for both internal use and for public disclosure.

Limitation of Liability:

Manulife is solely responsible for the preparation andpresentation of the information it has submitted to Futurepast
for verification. Our role is limited to expressing a conclusion as
to whether the greenhouse gas emissions and carbon storage as

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ENGMT-5E

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stated by Manulife are presented fairly in accordance with the
GHG Protocol. In doing so, we do not assume any duty, liability, or
responsibility of Manulife or of any third party. Our duties inrelation to the opinions expressed are owed solely to Manulife.
As such, we do not accept any responsibility for any loss allegedly
occasioned by any third party acting or refraining from action
because of our expressed opinions.

Details Pertaining to the Validation/Verification Body
Futurepast’s Role:

Futurepast is an impartial third-party validation/verification
body.

Declaration of Impartiality
Evaluation of Actual or
Potential Conflicts‐of‐Interest

Futurepast, and the verification team members and independent
reviewer, have evaluated their potential for compromised
impartiality and found no actual or potential threats to
impartiality with respect to the performance of this engagement.

Details Pertaining to the Verification Team and Independent Reviewer
Verification Team Leader:This verification was led by Kim Mattson.

Verification Team Members:

Bruce Carroll assisted the team leader in the execution of thisverification as a technical expert.

Independent Reviewer:This verification was independently reviewed by John Shideler.

Details Pertaining to the Verification
Type(s) of Engagement:

Verification

Objectives of the Verification:

To verify the 2022 GHG inventory of Manulife’s timberland
business and to confirm that emissions and reported removals
are free of material misstatements within the agreed level ofassurance and that the inventory conformed to the requirements

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3(FPF-AU-112 2023-03-22)

of the criteria.
Scope of the Verification:

Manulife directly operates forest lands in six countries: Australia,
Canada, Chile, New Zealand, Brazil, and the United States.

Level of Assurance:

LimitedThreshold of Materiality:

10 %Verification Criteria:

Futurepast performed this verification in accordance with therequirements of ISO 14064-3:2019.

Description of Work Performed
Manulife provided a methods document describing how they
followed the GHG Protocol for reporting emissions and a set of
spreadsheets showing their calculations derived from timbervolumes, timber harvests, land area, land exchanges, volume
estimate changes, and Scope 1 and Scope 3 emissions reporting.
Futurepast reviewed these documents using a risk-based
approach where we focused on those data that posed the greatest
risks to misstatement in their annual GHG report.

Description of the Basis for
Our Conclusions and Opinion

Futurepast verified the consolidated total carbon stocks andemissions found in the tab “Dashboard Total” of the Manulife
Calculator Dashboard 2022 v. 3 and many of the associatedlinked tabs. We reviewed the average stem volume per acre
values for selected property in the "Carbon Summary by
Property2022" tab in the Dashboard workbook as a check toensure that the values were within expected ranges andgeneralized assumptions on the forest types and management
regimes. We reviewed the other pools (standing dead,understory, debris) for reasonableness. We checked the actual
calculations used and the emission factors to convert to CO2
equivalent. We checked the sources for these equations andemission factors. We reviewed emissions from fuel use, fertilizer
use, and burning and how they were derived.
Issues we encountered were assembled into a list of findings andwere presented to the client for resolution. Manulife madecorrections and the corrections were accepted.
The data examined were historical in nature.

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ENGMT-5E

4(FPF-AU-112 2023-03-22)

Summary of the Responsible Party’s Statements
2021

2022

2,879

3,102

(b) Emissions - Fuel Combustion from Contractor
Owned Vehicles / Equipment (MtCO2e)

195,330

482,445(c) Total Direct and Indirect N2O Emissions(MtCO2e)21,199(d) CH4 and N2O Emission from Managed Fire
(MtCO2e)52,31837,489Total Scope 1 (MtCO2e, (a+c+d) )76,39649,050Total Scope 3 (MtCO2e, (b))

195,330(a) Emissions - Fuel Combustion from MIM TA
Owned Vehicles / Equipment (MtCO2e)** metric tons of CO2 equivalent

8,642

482,445

Total Non Biological Emissions (MtCO2e)271,726

531,496 (1)Removals (Net Biological Change MtCO2e)

3,179,520-1,339,974 (2)Storage (Carbon stocks MtCO2e)615,204,003

Resource Change

638,506,302-24,642,273

Wood products
2,943,228
Total Net GHG Profile* (2+3‐1)

2,557,633 (3)686,164

Source: Manulife Calculator Dashboard2022 version 3 May 5, 2023/Dashboard Total* Adjustments (Resource Change) are made to adjust 2022 values to be comparable to 2021.
These include property exchanges, and changes to inventory methods.
As shown in the table above, forest carbon stores increased by approximately 23.3 million MtCO2e
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ENGMT-5E

5(FPF-AU-112 2023-03-22)

from the previous year. This was offset by a negative 24.6 million MtCO2e Resource Change
adjustments for property exchanges and changes in inventory methods (so as to compare like withlike). This resulted in a net negative 1.34 million (i.e., decrease) in forest carbon stores. Carbon
stored in wood products was calculated to be 2.56 million MtCO2e. The wood products storage(2.56), net biological decrease (-1.34) in the forest carbon, and the non-biological emissions (-0.53)
summed to a net greenhouse gas profile of 0.69 million MtCO2e of removals for 2022.

Limitations, If Any
Manulife’s largest stores of carbon are in the forest stands. Carbon estimates are based on volume
estimates. Futurepast accepted the volume data “as is.”Scope 2 electricity emissions were not reported as no offices or infrastructure is located at the
remote forest sites and electricity emissions were considered de minimus.

Modifications, If Any
Manulife’s GHG inventory did not fulfil the requirement for public disclosure listed in the GHG
Protocol, Chapter 9, “Reporting GHG Emissions” that emissions data for all seven GHGs (CO2, CH4,
N2O, HFCs, PFCs, SF6, NF3) be separately reported in metric tonnes and in tonnes of CO2
equivalent.
Manulife’s inventory base year (2020) was not recalculated as required by chapter 5 of the GHG
Protocol.

Conclusions (Verification)
Except for the limitations and modifications described above, and based on our evaluationof the evidence, nothing comes to our attention which causes us to believe:
 That Manulife Investment Management’s inventory report for its timberland
business for the period from 1 January 2022 to 31 December 2022 is not materiallycorrect and is not a fair representation of its GHG data and information, and That Manulife Investment Management’s inventory report for its timberland
business for the period from 1 January 2022 to 31 December 2022 has not been
prepared in accordance with the World Resources Institute/World BusinessCouncil for Sustainable Development’s “The Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard – Revised Edition” (March 2004) as amended in2013 and 2015.
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ENGMT-5E

6(FPF-AU-112 2023-03-22)

Approvals
Kim Mattson
Verification Team Leader:Date: 2023‐05‐10
John C. Shideler
Independent Reviewer:
Date: 2023‐05‐21

Signature
Verification/Validation Body: Futurepast: Inc., Arlington, Virginia USA
Opinion Issued:2023-06-12

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ENGMT-5E

7(FPF-AU-112 2023-03-22)